What Does NAFTA Mean for Mexico's Ag Companies?

August 10, 2017 01:59 PM
 
 

Each day, 200 trucks loaded with 275,000 bushels of grain cross into Mexico every day from the United States. 

Many of the trucks that leave southern Texas and arrive in Mexico will end up at Forrajera Elizondo, a small feed mill in Apodaca, Mexico, just outside of Monterrey. Ricardo Elizondo Garza, owner of Forrajera Elizondo, said the North American Free Trade Agreement (NAFTA), allows him to be competitive in his business. 

 

“We don’t know how we’re going to be able to adapt to work if NAFTA is phased out,” said Garza. “They tell us in general, ‘You won’t be able to import anything from the United States.’ We’re going to try to do something. We’re going to try to go to South America and try to buy something there from South America. We’re going to buy some grain, but it’s going to be hard for us to compete with the big companies.” 

Rancho La Joya, sits just 90 miles South of Laredo, Tx. and houses 20,000 head of cattle. Thanks to NAFTA, the feedlot is buying a lot of American products.

The feed Rancho La Joya uses consists of corn, dried distillers grain (DDGs), and cottonseed. They’re also using technology and equipment from the United States to run the feed mill and American genetics in their cattle herd. 

“The only thing I’m afraid of is for some tariffs to be added,” said Martin Gonzalez of Rancho La Joya. “That is going to have an impact on production costs. The end consumer is the one who is going to be damaged and feel it the most. I don’t think that’s going to happen.”

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